Govt Increases Prices Of Bharat Rice And Atta, Bar Cash Transactions To Keep Tab On Surging Prices: Report

The food ministry further called on agencies like NCCF, NAFED, Kendriya Bhandars and urged them to not accept cash for transactions to help keep a tab on the commodities intended for the customers

In terms of Bharat rice, the government informed that it would provide a subsidy of Rs 2 per kg, making the effective issue price of Rs 22 per kg to the FCI. (Image Source: Unsplash)

Source : Unsplash

The government has reportedly hiked the retail prices of subsidised Bharat rice and wheat and also extended the sales of grain to keep a tab on the surging prices. The authorities have also barred cash payments for the sale of commodities by agencies to help control diversion, media reports said.

A report by The Financial Express cited sources in the know and said that the authorities are revising prices taking into account the availability and prices of staple commodities. The food ministry further called on agencies like NCCF, NAFED, Kendriya Bhandars, and more, and instructed them to not accept cash for transactions to help keep a tab on the commodities intended for the customers and ensure it isn’t diverted.

Official communication from the government revealed that the retail price of Bharat Atta was increased by 9 per cent from Rs 27.5 per kg to Rs 30 per kg. At the same time, the cost of Bharat Rice stood 17 per cent higher at Rs 34 per kg, against the earlier prices.

Effective immediately, the report noted that the government would provide a subsidy of Rs 2.35 per kg for Bharat Atta, making the effective issue price for the commodity for the Food Corporation of India at Rs 20.65 per kg.

In terms of Bharat rice, the government informed that it would provide a subsidy of Rs 2 per kg, making the effective issue price of Rs 22 per kg to the FCI.

Notably, about 3 million tonne (MT) of rice and wheat was allocated from the FCI stock last year for the Bharat rice and atta initiative to agencies like Kendriya Bhandars, NCCF, etc.

Earlier this year in February, the government announced the sale of Bharat rice at the subsidised cost of Rs 29 per kg in 5 and 10 kg packs. This move was undertaken by the food ministry to help boost supplies in the market at economical prices and keep a tab on the costs.